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Bitcoin Tests Range Lows as Fed, AI, and BoJ Drive Swings.
Bitcoin slipped toward the lower end of its recent range this week as macro forces tightened control of price action. The move unfolded across global markets during the penultimate full trading week of 2025, following a Federal Reserve rate cut. Wintermute said Fed policy, AI sector changes, and Bank of Japan risks shaped volatility and flow behavior.
Bitcoin Breaks Its Range as Macro Pressure Builds
Bitcoin traded between $88,000 and $92,000 for weeks before breaking lower to test $86,500. Notably, the move followed repeated rejections near $94,000 earlier this month. However, buyers showed limited follow-through as traders waited for confirmation amid competing macro drivers.
Wintermute said the market continues consolidating rather than trending, despite brief rebound attempts. According to the firm, Bitcoin now tests the lower boundary while macro conditions guide positioning. As a result, traders remain cautious, favoring selective entries over strong directional bets.
Meanwhile, broader crypto prices weakened alongside Bitcoin. Ethereum, Solana, XRP, and BNB fell more sharply, with many dropping over 4% daily, CoinMarketCap data showed. This pressure added to an 8% monthly decline for Bitcoin, which traded near $85,000.
Fed Policy Shift Widens Gap With Market Pricing
Attention then turned to the Federal Reserve, which delivered a widely expected 25 basis point rate cut. Cumulative easing reached 175 basis points, the first such level since September 2024. However, the Fed’s dot plot showed only one cut expected across 2026.
Markets, however, priced closer to three cuts next year, creating a clear policy gap. Additionally, the Fed announced $40 billion in Treasury bill purchases, effectively ending quantitative tightening. Consequently, macro uncertainty remained elevated despite the completed rate decision.#BTCVSGOLD #BTC #TrumpTariffs #CryptoRally $BTC $BNB $ETH
